• Sat. Mar 11th, 2023

SEC and Ripple filed a summary appeal


Sep 21, 2022

The U.S. Securities and Exchange Commission (SEC) and Ripple Issuer of Virtual Assets reportedly requested a summary ruling from the Southern District Court in New York. As a result, some observers say that the two-year lawsuit, which has been held since December 2020, may end.

SEC and Ripple filed a summary appeal with Federal Judge Annalisa Torres on the 18th (local time), according to CoinDesk. Both sides have asked Judge Torres to decide that Ripple violated federal securities laws or to close the lawsuit without further trial.

In December 2020, former SEC Chairman Jay Clayton sued Brad Gallinghouse Ripple Labs CEO and founder Chris Larson for $1.3 billion (1.8122 trillion won) worth of unregistered securities a day before his resignation. The SEC argued that Ripple did not meet the sub-test conditions to determine whether it was subject to the Securities Act.

The summary judgment is to ask the judge to determine whether either SEC or Ripple has sufficiently proven to violate the law.

SEC claimed that Ripple management took various measures to sell Ripple, and that Ripple investors bought it with the belief that the value of Ripple Coin would rise over time.

Ripple argued that there was no investment contract between the company and Ripple investors, and that it did not correspond to a joint business defining securities in the subtest. Ripple said investors would not have known who the seller was as they bought Ripple on the exchange.

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